Item 2. Properties
ITEM
2. PROPERTIES
OmniMetrix’s
activities are currently conducted in approximately 21,000 square feet of office and production space in the Hamilton Mill Business Park
located in Buford, Georgia, under a lease that was amended on June 20, 2025 to extend the lease term through November 30, 2030. The annual
operating lease expense was $184,000 in 2025 and $129,000 in 2024. For 2026, the annual operating lease expense will be $216,000 for
the year ending through December 31, 2026. OmniMetrix is currently utilizing only a portion of these leased facilities.
On July 6, 2021, the Company entered into an agreement with King Industrial Realty, Inc. to sublease from the Company 1,900 square feet
of the Company’s 21,000 square feet office and production space in the Hamilton Mill Business Park located in Buford, Georgia. This
sublease was amended on August 15, 2025 to extend the term through September 30, 2028 and to provide a monthly sublease payment of $3,374
plus annual escalators (the average monthly sublease payment in 2025 was $2,790), which includes the base rent plus a pro-rata share of
utilities, property taxes and insurance. Fifty percent of any excess rent received above the per square foot amount that the Company pays
will be remitted to the Company’s landlord less the allocation of any shared expenses and leasehold improvements specific to the
sublease. After the offset of the investment in leasehold improvements and other expenses related to the sublease, the total amount payable
to our landlord under the sublease was $8,295 for the year ended December 31, 2025, and $6,680 for the year ended December 31, 2024.
Below
are the future payments (in thousands) expected to be received from King Industrial Realty, Inc. under the sublease. The Company expects
to remit fifty percent of these amounts net of the annual service cost of approximately $2,600 to our landlord.
Year ended December 31,
2026
41
2027
42
2028
$ 33
Total undiscounted cash flows
$ 116
ITEM
3. LEGAL PROCEEDINGS
None.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
13
PART
II
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